Apr 29, 2011|
Jennifer Athas from the Boston Herald checks in to tell us a bit about short sales. Is it a good time to buy? We get Jennifer's take!
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
You know for the last six months I've been espousing the virtues of buying real estate I said hey. Prices that hit the bottom. And you know what month after month I've been proven to be incorrect I've been wrong. And real estate values continue to decline we're joined now by Jennifer -- -- is a real estate professional and right to call the the Boston Herald Jennifer how you doing today. Could very big very big -- young's. I have a question for Jennifer because I feel like courses but. I just I've been wrong about the real estate market. Is this in fact a good time to buy real estate. You know I think with the declining home prices in the low interest rate environment and everything points but it's the timing is perfect. Also Eric you know many reports an economist. At predicts. The prices to bottom it is 211. On -- -- -- secure job and competent to meet the strict lending requirements that -- saying now. It's it's said that I realize -- positions for the purchase. So in the Boston area where you as a real estate professional -- the best bargains where where do you have to go. To really get a deep value. In terms of yet it there's probably two to think -- about area the first the first places where people are gonna see. It's tax value or what -- and newer neighborhoods and started. Sprung up during the boom. You know at very high prices. A few years ago like the letter district -- -- -- opt in and out that there is clearly didn't take -- Like they were supposed to -- its real value there. And other things and -- -- part of the city. Area is that they have a lot of inventory. And -- areas to make -- -- ever built Quincy. In the long what area. Has really couldn't. What about the young buyer I'm thinking about date you know the young guy he graduated college last year the year before and you're -- in the -- son of a gun my rents going out. I I wanna buy a place where Kenya by. A two bedroom Condo for less than 275000. Books. I'm -- -- -- buyers who are gonna wanna be next to Boston you're able to commute easily in the city or some sort of public transportation. Like in areas like Watertown and to sort you know right outside of the city -- math. Right on the commuter -- when he met in the South Shore Dorchester. Roxbury West Roxbury Braintree Dedham. Framingham all all really good about. Norwood about foreclosures leave you wanted to try to take advantage of say -- Fannie Mae foreclosure we hear about countrywide for closing on a lot of properties. -- -- -- find -- say how does the individual in real estate investor find the foreclosures. At the way it Nicholas are confined foreclosure. Auction web site and one of my favorite is the pop -- -- web site what is it. It's all separate it the -- ESCO. Dot com. And they're at they've been around since the sixties generic option an appraisal firm and realistic and foreclosures throughout the states. On one thing to consider for the for closures as you might is something it's gonna be listed -- And it will probably be canceled two or three times before it actually that the -- -- out option actually happen. -- right now what about short sales you wrote about this in your column today explained our listeners what a short sale is from the standpoint of you wanna be the buyer of this property. It was still is slated to help her -- -- far short of the balance note on property. So you know you have a situation where our powers can't pay their mortgage and stayed. Have an agreement with the lender that Elena property at a moderate lot and don't foreclosure. So in terms of buyers looking for four for short sales. I would suggest doing it through. Its through using a buyer's agent or having a very realistic -- yup. In the article that I wrote about this state -- talks about the patience that you. You talk about that because I've had I've I've talked to young people and they said you know I tried to buy short sale I waited nine months and I couldn't get Bank of America or whoever the lending institution was. I couldn't get a response. And absolutely and people are gonna see that they have to be flexible and patients. And obviously pre qualified. So again I think I put it not my articles that. In the in Boston alone -- at least 5%. Of the total infant toys that are actually. Short hill right now 40% have active offers them. But I think that just being patient and you know it doesn't work -- that for property look again for another. What about speculators EC and speculators come back into the marketplace yet and buy properties with cash sure 40% down and things are bad they are they. Is it ER UC and that the Boston market. You know I I I would be competent speculators what we're saying is cash investors -- cash rich investors looking for good opportunities. In Massachusetts is still on a much better financial situation and -- -- perspective. -- as well or other other. You know situations and other parts of the country of people who are looking to diversify. Their financial part portfolio or -- make it into the into the game. And for people that our experience in line property. Have a question for -- of our listeners -- he texted it Vinny wants to know why rents are going up so rapidly. Well -- rental increase is basically -- supply and demand situation. Right now we have rental vacancies occur in all I'm well below 10%. Nationwide in Massachusetts and often expect. Canada 5% next three years which is unheard of because -- weak job market people -- -- the blind people Alley are let's sell their properties. They're basically renting it to -- and an -- property. The people in a separate financial hardship for -- or short seller to rent situation. So it's now. -- -- -- Jennifer and askew the same question I asked my listeners do you think five years from today if you buy a a two bedroom Condo in Boston in the Boston marketplace five years today is it worth more than it is today Ayers are worth less than an instant. You know I think it and turned it by the -- I think that's that the time. Period that would suggest it's going to be -- it. Alright Jennifer thank you very much for joining us. As Jennifer at bats from the Boston Herald joining us today on lunch money YouTube can join us and that's our question now we're an open up the phone lines. Gotta tell you I did not acknowledge the fact that I've been wrong in terms of my prediction. I thought real estate prices that hit the bottom back in November December of last year and I thought the first quarter this year was a great time to buy it yet month after month. The prices continue to decline. Now we'll tell you -- I -- shot up over there all right we don't need any of that. But here's what I would suggesting. I think real estate is a long term investment. When I say it's a long term investment if you buy a property today I think he needed to dissipate the gonna hold onto it for five to seven years may be longer. What do you think do you think that real state will be worth more or less five years from today our phone number is 617. 2666868. The lines are open right now first come first serve will real estate be worth more or less than what it is today 617. 2666868. This is a lunch money -- -- -- strong and AM 680 WRK.